diff --git a/.envrc b/.envrc
new file mode 100644
index 000000000..6b6394b2f
--- /dev/null
+++ b/.envrc
@@ -0,0 +1,8 @@
+#!/bin/bash
+
+if ! has nix_direnv_version || ! nix_direnv_version 2.2.1; then
+  source_url "https://raw.githubusercontent.com/nix-community/nix-direnv/2.2.1/direnvrc" "sha256-zelF0vLbEl5uaqrfIzbgNzJWGmLzCmYAkInj/LNxvKs="
+fi
+
+watch_file rust-toolchain.toml
+use flake
diff --git a/.gitignore b/.gitignore
index 8ed8a0203..9e717b212 100644
--- a/.gitignore
+++ b/.gitignore
@@ -5,3 +5,4 @@ target
 *~
 *.pyc
 result
+.direnv
diff --git a/flake.nix b/flake.nix
index 2199c7625..d23f3735f 100644
--- a/flake.nix
+++ b/flake.nix
@@ -20,7 +20,10 @@
     flake-utils.lib.eachDefaultSystem
       (system:
         let
-          overlays = [ (import rust-overlay) ];
+          overlays = [
+            (import rust-overlay)
+            (import ./rocksdb-overlay.nix)
+          ];
           pkgs = import nixpkgs {
             inherit system overlays;
           };
@@ -28,18 +31,26 @@
 
           craneLib = (crane.mkLib pkgs).overrideToolchain rustToolchain;
 
-          src = craneLib.cleanCargoSource ./.; 
+          src = craneLib.cleanCargoSource ./.;
 
           nativeBuildInputs = with pkgs; [ rustToolchain clang ]; # required only at build time
           buildInputs = with pkgs; [ ]; # also required at runtime
 
-          commonArgs = {
-            inherit src buildInputs nativeBuildInputs;
+          envVars = {
             LIBCLANG_PATH = "${pkgs.libclang.lib}/lib";
             ELEMENTSD_SKIP_DOWNLOAD = true;
             BITCOIND_SKIP_DOWNLOAD = true;
             ELECTRUMD_SKIP_DOWNLOAD = true;
+
+            # link rocksdb dynamically
+            ROCKSDB_INCLUDE_DIR = "${pkgs.rocksdb}/include";
+            ROCKSDB_LIB_DIR = "${pkgs.rocksdb}/lib";
           };
+
+          commonArgs = {
+            inherit src buildInputs nativeBuildInputs;
+          } // envVars;
+
           cargoArtifacts = craneLib.buildDepsOnly commonArgs;
           bin = craneLib.buildPackage (commonArgs // {
             inherit cargoArtifacts;
@@ -55,7 +66,6 @@
             doCheck = false;
           });
 
-
         in
         with pkgs;
         {
@@ -76,11 +86,9 @@
             program = "${bin}/bin/electrs";
           };
 
-
-          devShells.default = mkShell {
+          devShells.default = mkShell (envVars // {
             inputsFrom = [ bin ];
-            LIBCLANG_PATH = "${pkgs.libclang.lib}/lib"; # for rocksdb
-          };
+          });
         }
       );
 }
diff --git a/rocksdb-overlay.nix b/rocksdb-overlay.nix
new file mode 100644
index 000000000..722ba7a7f
--- /dev/null
+++ b/rocksdb-overlay.nix
@@ -0,0 +1,13 @@
+final: prev: {
+
+  rocksdb = prev.rocksdb.overrideAttrs (oldAttrs: rec {
+    version = "8.1.1";
+
+    src = final.fetchFromGitHub {
+      owner = "facebook";
+      repo = oldAttrs.pname;
+      rev = "v${version}";
+      hash = "sha256-79hRtc5QSWLLyjRGCmuYZSoIc9IcIsnl8UCinz2sVw4=";
+    };
+  });
+}
diff --git a/rust-toolchain.toml b/rust-toolchain.toml
index 7897a24d1..64aead883 100644
--- a/rust-toolchain.toml
+++ b/rust-toolchain.toml
@@ -1,2 +1,10 @@
 [toolchain]
 channel = "1.75.0"
+components = [
+  "cargo",
+  "clippy",
+  "rust-src",
+  "rust-std",
+  "rustc",
+  "rustfmt"
+]
diff --git a/tests/common.rs b/tests/common.rs
index 78932aa50..c85ebf7d9 100644
--- a/tests/common.rs
+++ b/tests/common.rs
@@ -57,7 +57,7 @@ impl TestRunner {
         }
 
         // Setup node
-        let node = NodeD::with_conf(noded::downloaded_exe_path().unwrap(), &node_conf).unwrap();
+        let node = NodeD::with_conf(noded::exe_path().unwrap(), &node_conf).unwrap();
 
         #[cfg(not(feature = "liquid"))]
         let (node_client, params) = (&node.client, &node.params);
diff --git a/tests/electrum.rs b/tests/electrum.rs
index d35d91eb3..504d16ca8 100644
--- a/tests/electrum.rs
+++ b/tests/electrum.rs
@@ -23,8 +23,7 @@ fn test_electrum() -> Result<()> {
     let server_arg = format!("{}:t", electrum_addr.to_string());
     electrum_wallet_conf.args = vec!["-v", "--server", &server_arg];
     electrum_wallet_conf.view_stdout = true;
-    let electrum_wallet =
-        ElectrumD::with_conf(electrumd::downloaded_exe_path()?, &electrum_wallet_conf)?;
+    let electrum_wallet = ElectrumD::with_conf(electrumd::exe_path()?, &electrum_wallet_conf)?;
 
     let notify_wallet = || {
         electrum_server.notify();